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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 9, 2002
ATLAS MINERALS INC.
(Exact Name of Registrant as Specified in Its Charter)
COLORADO 1-02714 84-1533604
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) (Identification No.)
Suite 205, 10920 West Alameda Avenue, Lakewood, CO 80226
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 303-306-0823
NOT APPLICABLE
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(Former Name or Former Address, if Changes Since Last Report)
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ITEM 5. OTHER EVENTS
See Press Release attached as Exhibit 99.1 hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ATLAS MINERALS INC.
(Registrant)
Date: September 9, 2002 By /s/ Gary E. Davis
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Gary E. Davis
Corporate Secretary
ATLAS MINERALS INC. NEWS RELEASE
10920 W. Alameda Avenue, Suite 205 02-4
Lakewood, Colorado 80226 OTC Bulletin Board: ATMR
Tel: 303-306-0823 5.9 million shares outstanding
Fax: 303-306-1139 September 9, 2002
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ATLAS SIGNS OPTION AGREEMENT ON POLYMETALLIC PROPERTY IN QUEBEC
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Denver, Colorado - Atlas Minerals Inc. (the "Company") announced today it has
signed a 120-day exclusive option agreement to acquire 100% of the outstanding
shares of Western Gold Resources, a private Florida company whose primary asset
is the Estrades polymetallic mine. During the option period, the Company will
conduct extensive due diligence of the property and seek financing for the
project as will be required should the Company exercise the option and proceed
with development.
The Estrades property, located approximately 120 miles northwest of Val-d'Or in
northwestern Quebec, hosts a polymetallic deposit known to contain gold, silver,
lead, copper and zinc. The Estrades property consists of a fully developed mine
and mine complex. The mine was last operated in 1992 before reportedly being
idled due to depressed metal prices and high contract mining and toll milling
costs.
According to a third party feasibility study prepared on the project in November
1989 by Wright Engineers Ltd., a predecessor of Fluor Daniel Wright Ltd., in the
base case the mine contained identified proven and probable reserves of 953,700
tonnes grading 5.6 g/t gold, 183 g/t silver, 0.96% copper, 0.92% lead and 10.69%
zinc. Records indicate that during initial mining approximately 162,000 tonnes
were mined, with the combined totals of tonnage and grade slightly exceeding
that as projected by the feasibility study. One of the primary objectives of the
independent due diligence to be conducted during the option period will be to
re-evaluate and re-confirm, as possible, tonnages and grades reported in the
feasibility study, pursuant to current reporting standards established by
applicable regulatory agencies and exchanges. This study will also update costs
and other economic parameters associated with mine development and production in
today's operating environment.
Conceptual operating plans contemplate a mining rate of 700 tonnes per day. Both
a copper concentrate and a zinc concentrate would be produced. The Company is
currently evaluating the possibility of constructing a mill on site to produce
the concentrates as opposed to toll milling.
The Company has retained SRK Consulting, a worldwide engineering firm, to
conduct due diligence on the property. In conducting the due diligence, SRK will
employ personnel from both its Lakewood, Colorado office and its Toronto office.
The study, which commenced this week, is expected to be completed by the end of
September.
Assuming positive results from the due diligence and approval from the Board
and, as required, by the Company's shareholders, the Company would subsequently
merge with Western Gold Resources. The Board has approved the terms of the
merger, which contemplates the issuance of 1.2 common shares of the Company for
each share of Western Gold, payment of $150,000 in cash, and other
considerations. Western Gold has outstanding 11,550,000 shares. The primary
shareholder of Western Gold Resources is Mr. Harold (Roy) Shipes, who also
serves in the capacity as the Company's Chief Executive Officer. Because of his
related party status, Mr. Shipes has abstained from voting on any matters
regarding this transaction, as brought before the Company's Board of Directors.
Mr. Gary E. Davis, Atlas' President and Chief Financial Officer, said in an
interview, "We are very excited to have this opportunity presented to the
Company. Should the Estrades mine prove to be what we think it can be, this one
acquisition would propel the Company to a level of development which could not
have been anticipated before last September when the Company's Board and
management was restructured. Coupled with the recent start of mining on Atlas'
White Cliffs diatomite property located in Arizona, the Company would have two
new operations within a year's time."
The Company is in the business of development and exploitation of natural
resource properties. Current efforts are being directed toward the
identification of possible acquisition opportunities of smaller-scale
properties, primarily in the sectors of industrial minerals, base metals, and
precious metals, which can be placed into production quickly and at low cost.
For further information contact Gary E. Davis, President and Chief Financial
Officer, at 303-306-0823.
On behalf of Atlas Minerals Inc.
"Gary E. Davis"
President and Chief Financial Officer
The statements contained in this release that are not historical facts are
forward-looking statements under the federal securities law. These
forward-looking statements are no guarantee of future performance, and involve
certain risks, uncertainties and presumptions that are difficult to predict.
Actual outcomes and results may differ materially from what is expressed or
implied by such forward-looking statements. The Company takes no obligation to
update publicly any forward-looking statements, whether as the result of new
information, future events or otherwise. This release is not an offer of
securities for sale in the United States; securities may not be offered or sold
in the United States without registration or an exemption from registration.